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Why Plug Power Stock Popped 5% Today

By Rich Smith – Aug 18, 2020 at 4:47PM

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An insider just made a big buy ... in another fuel cell company.

What happened

Shares of fuel cell pioneer Plug Power (PLUG 0.76%) closed 4.7% higher in Tuesday trading, and just like yesterday, this appears to be a case of "pin action" -- Plug Power stock benefiting from good news that actually relates more directly to an entirely different fuel cell company.

So what

Yesterday, it was a positive analyst note concerning Ballard Power and its ability to benefit from "green energy" stimulus programs that seemed to lift Plug stock. Today, it's a big insider buy at Bloom Energy (BE -0.86%) -- former GE CEO Jeffrey Immelt laying out $1 million-plus for Bloom shares -- that seems to be getting investors optimistic about Plug stock.

Arrow angles up on a green stock chart

Image source: Getty Images.

Now what

As my fellow Fool Travis Hoium observed, Immelt sits on the Bloom Energy board of directors, and so presumably has "insider information about the company's direction" -- and perhaps about trends in the fuel cell industry as well. The fact that Immelt just spent $1 million to buy shares of Bloom therefore might not necessarily be auspicious news for Plug -- but it also might.

And today, Plug investors seem to be betting that it is.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Plug Power Stock Quote
Plug Power
PLUG
$15.03 (0.76%) $0.11
Bloom Energy Corp Stock Quote
Bloom Energy Corp
BE
$20.85 (-0.86%) $0.18

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